More than 70,000 young people across Yorkshire and the Humber are currently out of work, according to new analysis that warns of a growing "disconnect" between the British education system and the labour market.

Data compiled by The Coders Guild, a digital skills training provider, reveals that while the region’s overall unemployment rate of 4.5% aligns with the UK national average, the impact on those aged 16 to 24 is disproportionately severe. In urban centres such as Bradford, more than 5,000 young people are currently claiming unemployment-related benefits.

The findings highlight a burgeoning national crisis; youth unemployment in the UK has reached 732,000, a rise of 99,000 in a single year. Projections suggest this figure could exceed 830,000 by 2028.

The report suggests a structural mismatch in the economy. Despite 60% of learners progressing into higher education, more than 36% of UK graduates are considered "underemployed," working in roles that do not require a degree. This comes as students in England graduate with an average debt of £53,000 ($66,000), a figure particularly daunting in northern regions where wage growth often trails the South East.

Crispin Read, founder of The Coders Guild, argued that the current system is "failing loudly" by prioritising academic selection over practical utility.

“We already have part of the solution sitting unused. Billions in unspent Apprenticeship Levy funding could be unlocking real skills and opportunity, yet we continue to teach people more and more about less and less, and then verify it worked by testing them in ways that only suit a fraction of the population. That’s not education. That’s selection,” Mr Read said.

The Apprenticeship Levy is a UK government tax on larger employers intended to fund workplace training. However, the report notes that more than £3.3 billion in unused funding was returned to the Treasury between 2019 and 2022. Meanwhile, private investment in training has fallen by 18.5% in real terms since 2011.

The analysis further highlights that while 25% of A-level students now consider apprenticeships—up from 15% in previous years—the traditional university route remains the default, often leading to "low-value pathways."

Mr Read added: “Social mobility doesn’t begin in lecture halls - it begins in local businesses across Yorkshire, where real-world skills, mentorship, and meaningful work come together. These environments build confidence and opportunity for young people who might otherwise be left behind.”

The organisation is calling for a fundamental shift in the UK's approach to skills, urging the government to move away from exam-centric assessments and foster stronger links between regional employers and educators to address chronic shortages in digital and technical roles.